Mexico serves as a useful case study of the costs of rising import dependence in
today’s high-priced food environment. Because one of Mexico’s most important food
imports is corn, Mexico also offers an opportunity to examine the ways in which U.S.
ethanol expansion contributes to higher food imports. Mexico now imports more than
one-third of its corn, overwhelmingly from the United States under the terms of trade
liberalization negotiated as part of the North American Free Trade Agreement (NAFTA).
Since 1994, when the agreement took effect and trade protections began to be removed,
corn, other basic grains, and meats have flowed south from the United States. Meanwhile,
Mexico has expanded its exports of fruits and vegetables to its northern neighbor. With
the implementation of NAFTA and other complementary economic reforms, Mexico’s
dependence on corn imports has grown from 7% in the early 1990s to 34% in recent
years (Wise 2010).
Mexico serves as a useful case study of the costs of rising import dependence intoday’s high-priced food environment. Because one of Mexico’s most important foodimports is corn, Mexico also offers an opportunity to examine the ways in which U.S.ethanol expansion contributes to higher food imports. Mexico now imports more thanone-third of its corn, overwhelmingly from the United States under the terms of tradeliberalization negotiated as part of the North American Free Trade Agreement (NAFTA).Since 1994, when the agreement took effect and trade protections began to be removed,corn, other basic grains, and meats have flowed south from the United States. Meanwhile,Mexico has expanded its exports of fruits and vegetables to its northern neighbor. Withthe implementation of NAFTA and other complementary economic reforms, Mexico’sdependence on corn imports has grown from 7% in the early 1990s to 34% in recentyears (Wise 2010).
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